When looking for an appropriate investment property to add to your portfolio, it’s tempting to focus on financial metrics like rental yield or capital growth potential. What’s sometimes overlooked though is a property’s capacity to attract great tenants. This is a crucial consideration because great tenants are more likely to look after your rental property and remain in it for an extended period of time, which also has a positive impact on your financial bottom line.

In this blog, we’re going to explore some of the factors to consider when purchasing a new investment property to make sure you’re setting yourself up to attract the best tenants.

What great tenants look for in a rental

Location, location, location

When evaluating the location of a potential investment property, we often think about whether it’ll appeal to tenants, but are we thinking about the right tenants? For example, choosing a location that will appeal to families is a great way to increase your chance of attracting mature tenants who are looking for a place they can make their own. This also means they’re likely to stay longer, so you won’t need to spend as much money on advertising or lose out on potential rental income from tenants coming and going and leaving your property vacant for weeks at a time.

To attract these great tenants make sure you do your research on what amenities are near your potential property and whether they’ll appeal to your target tenant. If you’re hoping to attract families, look for schools, parks and shopping centres. If you’re more focused on young professionals, look for thriving hubs of activity with bars, restaurants, and easy access to public transport.

Property Features

Think about what your target tenant is looking for in a home – does the property tick their boxes? For example, you may have identified that, based on the area and the amenities, the property you’re looking at is likely to appeal to young professionals, perhaps even flatmates sharing the space. From this perspective, internal layout is going to be crucial because flatmates are probably more likely to need privacy compared to a family or couple living together. Considerations would include separation between common areas and bedrooms, the number of bathrooms and the amount of storage space.

Other things to keep an out for are:

• Outdoor space
• Access to parking
• Air conditioning
• Quality built-in appliances like ovens and stoves
• Whether the property is new or recently renovated

Community

A suburb with a strong sense of community is more likely to attract tenants who are looking for a long-term rental. Depending on your target tenant, the presence of community hubs and activities like community centres, night markets, playgroups and local festivals will play a crucial role in helping your property stand out.

A good place to start is checking the suburb’s relevant local government website. Have a look around the site and see if there’s a focus on providing events and activities that are likely to appeal to your target tenant. You can also look at how active community Facebook groups are.

Pet-friendly

Though upcoming changes to WA’s Residential Tenancies Act 1987 are going to make it harder for landlords to refuse tenants with pets, advertising your property as explicitly ‘pet-friendly’ can help signal that you openly welcome pets.

But why is this worth doing? Lots of prospective tenants have pets, and this can sometimes make finding a suitable rental a challenge. By making it clear that you welcome them and their pets, you’re likely to attract long-term tenants who want to make a home for themselves and their furry friend(s).

Advertising your property as pet-friendly can also help you justify slightly higher rental prices. If tenants are weighing your property against another one that’s slightly cheaper but has a landlord that’s going to make pet ownership difficult and uncertain for them, the extra rent may just be worth their peace of mind.

Are you considering purchasing a rental property but want to make sure it’s going to attract the right tenants? We’re here to help! Send us your query today and we’ll be in touch shortly.